Dubai's biggest Mall paves the way for a new shopping era (page 2 of 2)

This, alongside the growth in tourism, will be the drivers for the retail sector. The Dubai Mall, as one of the world's largest shopping and entertainment destinations, will be a significant contributor to retail sector GDP.'

What feeds the strong demand for all types of retail is the diversity of nationalities and cultures residing in, and passing through, Dubai.

The diversity of Dubai's population, the booming tourism market and the strong trend for malls as entertainment and leisure destinations will continue to drive traffic towards the malls.

'However, there will be room enough in the market for small and big retailers, particularly with retail being increasingly niche-driven. The key is to create the right value and brand differential,' Badour adds.

And as he sees more malls being developed to meet the growth in the Middle East retail industry, which is projected to be worth $500bn by 2010, Badour places Dubai at the front of this growth.

Nonetheless, the increase in the number of malls creates a competitive environment, and to Badour, this is to the advantage of the customer in terms of choice and value-for-money.

However, only those mall developments that offer true value differentials can succeed in the long-run he argues.

When asked on the expected future retail trends and whether the retail sector will reach saturation, Badour confesses that it is difficult to predict.

Only time will tell when the sector will hit saturation, but for now, he says that the industry is only just beginning to peak .

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Has the Middle East's retail sector reached maturity?
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